Updated from 4:53 p.m. EDT
Stocks in New York rose for the third time in four sessions Friday, as strong profit reports after the last close brought buyers back into the market.
Dow Jones Industrial Average
gained 53.49 points, or 0.39%, to 13,820.19. The
was up 7 points, or 0.46%, to 1525.75. The
was better by 16.93 points, or 0.64%, to 2671.22.
For the major indices, it was their second winning week in a row, mostly thanks to the
50-basis-point interest rate cut on Tuesday. The Dow and the S&P 500 both climbed 2.8% for the week, and the Nasdaq added 2.7%.
"Today was a continuation of this week's good news, carrying us and allowing the rally to continue," said Paul Nolte, director of investments with Hinsdale Associates. "Next week there's a mess of earnings and data, so it will be tough to reconcile what the market has done this week. All in all, this was a positive end to a very good week."
Breadth was positive. On the
New York Stock Exchange
3.72 billion shares changed hands, as advancers topped decliners by a 5-to-3 margin. Volume on the Nasdaq reached 2.36 billion shares, with winners outpacing losers nearly 8 to 7.
Crude oil pulled back a day after setting yet another record. The newly benchmarked November contract finished down 16 cents to $81.62 a barrel, but ended 4.5% higher on the week.
Gold lost $1 at $738.90 an ounce, while silver rose 15 cents to end the day at $13.62 an ounce. The dollar again was weaker against most other major currencies, including the euro and the Canadian dollar.
U.S. Treasury prices were stronger after a multisession slide. The 10-year note was up 16/32 in price, yielding 4.63%. The 30-year bond was adding 1 4/32, reducing the yield to 4.89%.
Meanwhile, traders also had to deal with options expiration. Derivatives contracts on single-stock futures, stock options, index futures and index options all traded for the last time. The simultaneous expiration happens quarterly and can lead to considerable swings in the market.
The economic docket was empty, but there were several Fed officials out with comments. Fed Governor Fred Mishkin delivered a speech on monetary policy in Germany, referencing the latest policy meeting when he said that the central bank needs to make "informed guesses" about policy.
Fed Vice Chairman Donald Kohn was also in Germany, and he defended the recent rate cut as a benefit for the global economy, dismissing notions it was a bailout for the U.S. stock market.
"Federal Reserve policymakers have not been asymmetrical in intent or in actions, in that we have always focused sharply on the macroeconomy," said Kohn. "Policy was motivated not by the desire to achieve any particular level of asset prices, but rather by the Federal Reserve's assessment of how changes in asset prices were affecting the forecast of growth and inflation."
Fed Governor Kevin Warsh was speaking in New York State, and he offered his own comments on subprime and credit.
"Reduced liquidity conditions in markets today stem from a pullback in investors' willingness to take risks, which may have been triggered, but I argue not caused, by losses in subprime-mortgage markets," he said. "Thus, a broader reassessment of risk positions appears at work, especially for products that are opaque or complex."
Following the previous close, software developer
posted a fiscal first-quarter profit that rose 26% from a year ago, beating the Thomson First Call consensus by a penny. Shares rose 93 cents, or 4.4%, to end at $21.97.
Another late-day reporter,
handily beat fiscal first-quarter earnings and revenue targets. However, Nike was off $1.06, or 1.8%, closing at $57.26.
was up after the chipmaker raised its dividend by 25% to 10 cents a share. TI also added a buyback of up to $5 billion in stock. Shares climbed 85 cents, or 2.4%, to $36.62.
On the other hand, gold-related stocks faced pressure after Merrill Lynch downgraded
to neutral from buy, citing valuation. The firm also cut
to neutral from buy. Barrick lost 2.2% to $40.06, and Agnico-Eagle was down 3.1% to $49.81.
Overseas markets were mixed. Overnight in Asia, Japan's Nikkei 225 slipped 0.6% while Hong Kong's Hang Seng rose 0.6%. In Europe, London's FTSE 100 added 0.4% and Germany's Xetra Dax tacked on 0.2%.